Whether you’re still in the idea phase or are looking to grow; our free Business Plan guide can help you confidently take the step from business idea to getting started!
Business Plan
So what is a business plan, we hear you ask…
Essentially it’s a written document that sets out your strategy and action plan for the next one to three years, or sometimes longer. Simple right? However, research shows that one in four businesses don’t have a business plan. (HMRC)
Your business plan should help you to:
- clarify your business idea
- spot potential problems
- set out your goals
- measure your progress
Before you start
Many people assume a business plan will be a hefty tomb of a document containing lots of stats, graphics and words, but it really doesn’t have to be. The key thing is to choose a format that will work for you and your business.
For this reason, you need to contain as much information as possible as the plan needs to make a genuine case for its existence. The plan also needs to be positive and inspiring to show the promise your business offers. Your business plan shouldn’t be a static document – you should look to update on a regular basis especially as your business grows and major changes in the marketplace happen (COVID-19), this will help to ensure things are moving in the right direction!
The best plan for you is:
- One that you refer to on a regular basis and are happy to keep up to date
- One that should excite and inspire you and your audience
- Shareable, your plan will be seen by lots of people, your bank manager, accountant, possible investors and employees.
Let’s explore the areas that your plan should cover…
1. Executive Summary
Imagine you have 30 seconds to sell your business before you reach the next floor. This is your executive summary!
The first page needs to capture the scope of your business and inspire the reader at a glance. Next, you will need to demonstrate to a potential investor that you understand the market opportunity, what makes your business unique, and your strategy to succeed.
Keep it short; you’ll need a concise business plan if you wish to secure investment. Outline your company and describe the need for your product or service.
2. Goals and objectives
What does the business want to achieve? You should set some SMART (specific, measurable, attainable, relevant, time-based) objectives that will quickly show if the business is succeeding and heading in the right direction.
3. Audience and the market
The purpose of market research and analysis is so you can highlight segments of the market in which you compete and where your ideal customer fits.
Make sure you highlight your target market and how you will reach them. Then, use this data to back up your argument in your business plan.
- Who is your ideal customer?
- You will need to describe your typical customer and how your business can satisfy their needs.
- What is your market share?
- Who is making the purchasing decisions?
The next up is to outline your potential competition in your chosen industry and beyond!
Start by researching local competitors, products, services, prices and company objectives; this will help identify what is currently on offer and what you do differently.
Check out websites and social media feeds to learn from their strengths and marketing materials. But, most importantly, analyze their weaknesses and find the gap in the market you can fill.
You can take advantage of this in your business plan and improve your offer. But, first, you need to ask yourself why customers will buy your product or service instead? As well as how you will respond to new products and changes in the market as they appear.
This analysis should never stop even when you create and launch a successful business. The marketing environment is constantly changing, and it is important to understand your competitor profiles inside out to stay ahead of the game! Your plan needs to be adaptable.
Top tip!
Make sure you carry out research into company names and trademarks to avoid any unwanted legal costs and angry emails!
Find out more about Intellectual Property in our guide
4. Products and Pricing
What will you be selling and how will you set your prices? How does this compare with the competition?
5. Who will be involved
Many investors say they invest as much in the people as they do in the business. Share some information about the people who have an active role within the business, you could include their role, activities, previous experience and passions.
6. Finances
Of course, an investor will pay close attention to this section of your plan. You need to be very clear on how you will make a profit and ROI.
You will need to display forecasts and cash flow projections to help secure loans and investments.
A detailed breakdown of all the costs will also allow you to prepare for unexpected costs and understand how you will achieve your outcome.
Did you know at Farnell Clarke we have a team that can help with forecasts and cash flow?
Extra
Some business plans include sections like a SWOT analysis and a full marketing plan. You might find these useful as it gives you a full 360 view. Check out our other guides on these areas for help
We really hope you found this guide a good place to start when it comes to starting your business. We’re sure you have plenty of questions that we’d love to talk through with you so drop us a note and we’ll be in touch